Will Uprising Food Ever Be Profitable? | Shark Tank US | Shark Tank Global

Next up is a healthier version of Indulgence Hello Sharks, I'm William and I'm Kristen, we are husband and wife, dynamic duo, co-founders of Uprising Food from Cincinnati, Ohio, today we are here looking for 500,000 for 3% of the equity in our company . Hello

shark

s, we want to revolutionize health and it starts with bread. We partner with the best artisan bakers in the industry to bring you the healthiest, tastiest, most powerful bread in the game. Did we mention that our bread, also known as the insurgent cube, is keto paleo? and improves gut health, that's right, it's dairy and gluten free, some say it even tastes like it's straight from heaven.

We've truly done the impossible, our cubes are packed with fiber and created with clean, boosted super

food

ingredients, now who wants to join? our health revolution and bring this delicious taste of bread from heaven to the masses, wooo, now who wants to taste heaven, want T? We have here so what we have today is for you to experience the grilled cheese rising live, we also have French toast and this. It's just a simple piece of bread, right, yeah, I'm going to try that too. Go ahead, jump right in, so we didn't just stop at bread, we also create chips and yes, we have sales in both, we are brand builders through and through.

I worked at Proctor and Gamble and Kristen works at another CPG company. It's important to us that we bring an aesthetic and inspiration to our branding efforts. It's got a little sponginess to it, almost cake-like, and it's really chewy, exactly what is that? It's purposely designed because we want you to have a very specific mouthfeel with this bread for the last 4 weeks in the refrigerator. Yes, that is amazing and without preservatives. I'm going to give you a little credit for the taste because I've tried a lot of these products and they taste great, this is pretty good, how much is it, how much is $12? lots of power on that guys, I think the bread tastes absolutely delicious but I can't beat the 12 dollar price for this little like half a loaf of bread, how does that compare on the market?

I want to find a $5 loaf. bill on the loaf, you know what I mean? I don't understand that this is not a basic bread, we are looking to improve the bread. Frankly, Americans are getting sick because of

food

s that have been industrialized on a mass scale. My father is the type of person who represents the masses now he is an annuity for the medical system they gave him 4 weeks to live we intervened with food and my dad is still here today when we think about what we are doing here it is not about us having success is about the mission of helping people and we

will

drive success by solving this problem for society so I agree with

ever

ything you say and I totally agree with the disease factor.

My father died from basically the same problem. An Irish, a lot of starch, a lot of white flower. he killed it but not

ever

yone in America can afford eight servings $12 that's very expensive yeah exactly what is the income from this business? So the first year in business, 2019, we made 85 thousand Toplines, the second year in business, 2020, the pandemic hit, we made just under a million Toplines. How is it possible? What did you do well? Wait, get better, get better first 6 months of 2021 2.1 million to date quite a bit. I almost want to ask you for proof that we are experts in digital marketing, so right now we can offer a consumer. for a customer acquisition cost of just under $50, that's a lot for what you sell because you need a lifetime customer to get over that Bingo, it would be a lot if we weren't on such a high frequency consumable, we have to get familiar with these numbers. because last year's sales were really impressive, but what is your profit?

We are not cash flow positive, but we have just under a million in net losses. I'm sorry for last year. Yes, we sell a bar for $12 that cost us $525 to make, but come on. We talk about shipping once you take that for shipping, we clear out about a 30% margin once you average our package and make about $3.60 per bar, yes, 500,000 times 3% imputes a rating of 16.6 million, explain why you're worth $16.6 million, okay? We are on track to make 5 million this year, as you may have heard, we have made 2.1 million so far this year, other companies like us believe they can get a 6x multiple on the market, but it is not making money yet, Are you saying that you are? we are going to make money if you hit 5 million this year not at all so when

will

you become

profitable

? eh, we will be

profitable

when we reach a certain level of scale, no joke, you will be profitable when you reach a certain level of scale, our goal is to drive core revenue.

All the

shark

s are still there, but they are worried about the lack of profits for William and Kristen's healthy bread company. Uprising Food, are you saying you're going to make money if you hit 5 million this year? No, not at all, it is not like that. When does it become profitable? Our goal is to drive Top Line R. What is your exit strategy? Yes, we would like to exit the company to a larger multinational or we could foresee this company going public at some point. I don't think so. I've ever sat and spent this time in my seat and heard more fancy words in my entire life, right, okay, I guess if I had to put money into your business, I wouldn't sleep a wink tonight.

Wow, okay, it's not even a business that I. I'm hearing it's because the

uprising

, the battle has begun, but the bottom line is I don't trust you to even protect my money and unfortunately for me that's the reason I'm out, let me tell you a quick thing. I want to share some things with you. I like the concept of healthier foods and I think it will have great potential in the future because it is trendy for what people want, but unfortunately it is also too big a ask for me. your rating, so sorry, I'm out, it's okay, thank you Laur, thank you.

I'm stuck as an investor in this, it's 500,000 times 3% for this deal to work, you'll have to come out at around 500 million. rating to get my money back I'm out fine thanks guys I think the product is great you know I consider myself a foodie and definitely a bread girl and I thought this bread was really cool but I still think you guys I know The sign of a really good entrepreneur is to really know the climate you're in and I think for many years now, those of us who are in direct consumer businesses have really been able to scale our businesses and do exactly what you said we would. were going to do, chase the top line without any real consideration to becoming a profitable business, you didn't come and demonstrate what your path to profitability is.

Great point, they missed it, they talked about the whole economics of their orders, which is BTW, not that great because you're paying too much to acquire the customer and like everyone said, you're not profitable with your first few customers, so I think for me you already know I'm out, thanks, yeah guys, look, why not? Don't you run the company to be profitable now? Why didn't you seek to be profitable every month to be able to sustain all this? That's exactly what we did. Mark, you lost a million dollars on Journey to get here aggressively. took CAC to the floor, we've been the number one lowest CAC in that's a meaningless metric, you start small, you get a nice little product and whatever you do, you also go to the door, you go online, you do it.

You sell locally and you make money and you grow, but now your back is really against the wall because you are losing money on every sale, so the more customers you acquire, the more money you will lose, unless you can make sure that you sell them a lot more products and your loss. products are expensive and you know the bread is a slice, you get it and it's like, what do I do now? You know, take a bite. That rind is actually very important to preserve the product. People buy that product for the trifecta of three. reasons why you can't find something so healthy that tastes so good and is so fresh, so why don't you say that?

Why don't you say that was the best thing you said all day? Exactly, those were the best sales you made. Unfortunately, the packaging you're looking at is our Gen 2 packaging before we checked that position statement and found out it was the winning com. You're driving me crazy, okay, look, we're constantly fine, right? oversell with all the jargon when you have a really good product, all your little speech about the base, there everything you should say and just sell this just for that. I want a product that gives me all these things that I can't. getting from a sliced ​​product that's all you had to say, so keep it simple, focus on the product and the quantity.

Thank you all very much, good luck with the line. Thanks thanks. I honestly think sharks are crazy. I wonder what they ate this morning. We know our product is changing people's health and they couldn't see that I'm not sure what's wrong with them.